BNP Paribas is expected to have global custody of up to 20 billion U.S. dollars of AIIB assets and will be providing a list of custody services, AIIB said in a statement.

"As a new multilateral financial institution, we are focused on building our trading capabilities to deliver infrastructure projects that will improve Asia's development," said Thierry de Longuemar, AIIB vice president and CFO.

The agreement will be implemented in the third quarter of 2017.

AIIB is a new multilateral development bank founded to bring countries together to address the infrastructure needs across Asia. It commenced operation in January 2016.